Summative Assessment

Branches of Accounting

MULTIPLE CHOICE. Read and analyse each item. Choose b. All in all, there are total of seven subjects in the
the best answer. board exam.
c. In order to pass, a student should not get a
1. This branch of accounting focuses on creating value rating below 60% in any of the subjects.
for the business by providing information used in the d. a and c only
financial accounting and management accounting
fields. 9. The primary guidance followed by tax accountants is
a. Accounting education a. National Internal Revenue Code (NIRC)
b. Cost accounting b. Philippine Financial Reporting Standards
c. Tax accounting (PFRS)
d. Auditing c. Philippine Accounting Standards (PAS)
d. Chartered Institute of Management Accountants
2. One of the differences of financial accounting from (CIMA)
management accounting is
a. Financial accounting are beneficial to external 10. These are costs that do not change in total amount
users only. within a relevant range of activity.
b. Financial accounting can be used by internal a. Variable costs
users only. b. Fixed costs
c. Financial accounting produces reports known as c. Direct costs
the financial statements. d. Indirect costs
d. Financial accounting unlike management
accounting, primarily aims to help managers in 11. Which government agency is responsible for the
their decision making. keeping of the national funds of the government?
a. Bureau of Treasury
3. The definition of government accounting came from b. Department of Budget and Management
a. Section 109 of Presidential Decree 1446 c. Commission on Audit
b. Section 109 of Presidential Decree1445 d. Department of Education
c. Section 110 of Presidential Decree 1445
d. Section 110 of Presidential Decree 1446 12. What is the main benefit of standardized financial
statements?
4. Information produced by this branch of accounting a. Easier to prepare than non-standardized financial
aims to educate students in the field of accountancy. statements
a. Accounting education b. Provide more useful information for internal users
b. Accounting research c. Adhere to the requirements of relevant
c. Financial accounting accounting standards
d. Management accounting d. Enhance the comparability and understandability
of financial statements
5. Which if the following qualifications of an external
auditor is considered the most important? 13. Accounting research should follow which of the
a. Competence following guidelines?
b. Objectivity a. PFRS and PAS
c. Independence b. NIRC
d. Integrity c. CIMA Code of Ethics
d. All of the above
6. Financial accounting is concerned with
a. General purpose financial statements 14. Which of the following is NOT a role of a
b. Special purpose financial statements management accountant?
c. Tax returns a. Assists in the preparation of general purpose
d. Management reports financial statements.
b. Monitors spending and financial control
7. Financial accounting reports primarily to c. Conducts internal business audits
a. Government agencies d. Explains the impact of the competitive
b. Taxing authorities landscape
c. Top management of the company
d. Creditors and investors 15. The frequency of reports generated by management
accounting can be best described as
8. Which of the following is true about the board exam a. Annually
of accountancy students? b. Quarterly
a. In order to pass, a student needs to achieve a c. Semi annually
general average of at least 75%. d. Whenever management demand
TRUE or FALSE. Choose the letter that represents the 22. Statement I- Accounting research is a branch of
correct combination of answers. accounting.
Statement II- Accounting research deals with the
16. Statement I – Managers of a company are creation of new knowledge.
considered internal users of financial reports. a. Both statements are true.
Statement II – The public, even if not potential b. Only Statement I is true.
investors, creditors, or customers, are considered c. Only Statement II is true.
external users of financial reports. d. Both statements are false.
a. Both statements are true.
b. Only Statement I is true. 23. Statement I-Reports generated using management
c. Only Statement II is true. accounting should follow standards such as PFRS
d. Both statements are false. and PAS.
Statement II-Management accounting caters to
17. Statement I – Only CPA who passed the board exam internal users only.
can practice the profession of accountancy in the a. Both statements are true.
Philippines. b. Only Statement I is true.
Statement II – Auditors are also users of general c. Only Statement II is true.
purpose financial statements. d. Both statements are false.
a. Both statements are true.
b. Only Statement I is true. 24. Statement 1- The Bureau of Treasury shall be
c. Only Statement II is true. responsible for the formulation and implementation of
d. Both statements are false. the National Budget with the goal of attaining our
national socio-economic plans and objectives.
18. Statement I - In terms of conflict, tax accountants Statement II- The Department of Budget and
should follow the pronouncements of the PFRS over Management is responsible for the safekeeping of the
those of the NIRC. national funds, and for the management and control
Statement II – Tax accounting follows all the of the disbursements of such funds.
guidelines provided in the PFRS and PAS. a. Both statements are true.
a. Both statements are true. b. Only Statement I is true.
b. Only Statement I is true. c. Only Statement II is true.
c. Only Statement II is true. d. Both statements are false.
d. Both statements are false.
25. Statement I- The government accounting process
19. Statement I – Unaudited financial statements are involves the Commission on Audit (COA), the
useful in making economic decisions. Department of Budget and Management (DBM), the
Statement II- The PFRS and PAS are created to Bureau of Treasury (BTr) and all other government
provide guidelines to be followed by accountants in agencies.
financial accounting. Statement II- Government accounting starts before
a. Both statements are true. declaration of the General Appropriations Act (GAA).
b. Only Statement I is true. a. Both statements are true.
c. Only Statement II is true. b. Only Statement I is true.
d. Both statements are false. c. Only Statement II is true.
d. Both statements are false.
20. Statement 1-Cost accounting is a branch of
accounting that provides information for management
accounting and financial accounting.
Statement II-Cost object is the resource to achieve an
objective
a. Both statements are true.
b. Only Statement I is true.
c. Only Statement II is true.
d. Both statements are false.

21. Statement I- Financial accounting has a wider scope

than cost accounting.
Statement II-It can be said that cost accounting is just
a subset of financial accounting.
a. Both statements are true.
b. Only Statement I is true.
c. Only Statement II is true.
d. Both statements are false.